By: Parker S.B. No. 605
73R1996 LJD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to avoidance of liability by correction of certain
1-3 violations of state credit law.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1.06, Title 79, Revised Statutes (Article
1-6 5069-1.06, Vernon's Texas Civil Statutes), is amended by adding
1-7 Sections (4) and (5) to read as follows:
1-8 (4)(A) A person has no liability to an obligor for a
1-9 violation of this Subtitle if:
1-10 (i) within 60 days after the date the person
1-11 actually discovered the violation the person corrects the violation
1-12 as to the obligor by performing the required duty or act or by
1-13 refunding any amount in excess of that authorized by law; and
1-14 (ii) the person gives written notice to the
1-15 obligor of the violation before the obligor has given written
1-16 notice of or has filed an action alleging the violation of this
1-17 Subtitle.
1-18 (B) For the purposes of this section, the term
1-19 "actually discovered" may not be construed, interpreted, or applied
1-20 in a manner that refers to the time or date when, through
1-21 reasonable diligence, an ordinarily prudent person could or should
1-22 have discovered or known as a matter of law or fact of the
1-23 violation in question, but the term shall be construed,
1-24 interpreted, and applied to refer to the time of the discovery of
2-1 the violation in fact. However, the actual discovery of a
2-2 violation in one transaction may constitute actual discovery of the
2-3 same violation in other transactions if the violation actually
2-4 discovered is of such a nature that it would necessarily be
2-5 repeated and would be clearly apparent in the other transactions
2-6 without the necessity of examining all the other transactions. For
2-7 purposes of this Section the giving of written notice shall be
2-8 accomplished by and on the delivery of the notice to the person to
2-9 whom the notice is directed or to the person's duly authorized
2-10 agent or attorney of record. The delivery shall be made in person
2-11 or by United States mail to the address shown on the most recent
2-12 documents in the transaction. Deposit of the notice as registered
2-13 or certified mail in a postage paid, properly addressed wrapper in
2-14 a post office or official depository under the care and custody of
2-15 the United States Postal Service constitutes prima facie evidence
2-16 of the delivery of the notice to the person.
2-17 (C) A person has no liability to an obligor for a
2-18 violation of this Subtitle if:
2-19 (i) before March 1, 1994, the person corrects
2-20 the violation as to the obligor by performing the required duty or
2-21 act or by refunding any amount in excess of that authorized by law;
2-22 and
2-23 (ii) the person gives written notice to the
2-24 obligor of the correction before the obligor has given written
2-25 notice of or has filed an action alleging the violation of this
2-26 Subtitle.
2-27 (5) The action of a person who corrects a violation of this
3-1 Subtitle as provided by Section (4) of this Article is effective as
3-2 to all persons in the same transaction, and those persons are
3-3 entitled to the same protection as that provided by Section (4) of
3-4 this Article to the person who makes the correction.
3-5 SECTION 2. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended,
3-10 and that this Act take effect and be in force from and after its
3-11 passage, and it is so enacted.